Comcast to Big Ten Network - "Blow it Out Your Ass!"

The war of words between the fledgling Big Ten Network and cable companies heated up last week with Big Ten ConferencecommissionerJim Delany blasting cable provider Comcast for comments a company executive made in a recent NY Times article that depicted the network's proposed offerings as "second and third choice" programming with many of the premium contests already available on Comcast's system.

Delany was also upset at Times reporter Richard Sandomir for supposedly making disparaging remarks regarding Iowa's women's volleyball team. The only problem is that Sandomir said nothing of the sort.

Sandomir interrupted a teleconference Delany was conducting with sports writers from around the Big Ten region on Wednesday to refute Delany's comments about supposed slights Sandomir made toward the Iowa women's volleyball team. (Read about that exchange here.) Delany eventually backed away from those comments.

Still, Delany pushed for an apology from Comcast, which is embroiled in what is turning into a bitter negotiating war with the Big Ten, regarding a Comcast executive's "second and third choice" statement in the NY Times article.

Comcast's reply to Delany? In so many words they said, "Blow it out your ass!"

Basically, what the Comcast exec said was accurate. Most of the prime conference contests in football and basketball will be available on channels already part of nearly every cable system across the region. The Big Ten Network will exist on the table scraps and throw-away games the major networks don't want to air.

The continuing tough stand both the Big Ten and Comcast are taking probably means the Big Ten Network will not be available to Comcast's 5.6 million subscribers in the Midwest - easily the largest cable provider in the region - when the network begins broadcasting in August. And Comcast isn't looking to bow to the Big Ten Network's demands any time soon.

To reiterate the stalemate that I've talked about in earlier posts (here and here), the Big Ten Network is asking for a per subscriber fee of $1.10 from cable companies in the eight states that comprise the Big Ten region. That would be the third highest per subscriber fee in the cable industry (behind ESPN and TNT), and more than double the subscriber fees of such networks as USA Network, CNN and TBS.

What Comcast and other cable providers would like to do is to include the Big Ten Network on a premium tier of channels - most likely a sports tier. However, the Big Ten is balking at this saying the network must be available on the cable provider's basic channel package.

Comcast is sitting pretty right now after recently winning a lawsuit brought on by the NFL Network who sued the cable provider when Comcast put the network on a premium sports tier in some markets last fall. The NFL Network also wanted to have cable providers include their network in a basic channel package. Comcast maintains that having the NFL Network on a sports or premium tier allows people who may not want the channel to not have to pay extra in the form of increased rates for basic cable. Their argument regarding putting the Big Ten Network on a sports tier and keeping it off basic is the same.

During Delany's teleconference last week with reporters, he tried his best to paint a rosy picture for the advent of the Big Ten Network later this summer. He talked about the procurement of nearly 4000 Big Ten archived games - classic matchups in basketball, football, wrestling and other sports that will initially contribute to the bulk of the Big Ten Network's programming.

In the first year of broadcasting, the Big Ten Network is shooting for about 400 live broadcasts of conference sporting events. Of those 400 broadcasts, the majority will be available in HDTV.

Delany also talked about how the Big Ten Network will be a "gender equity" network within three years - meaning the proportion of women's sporting events shown on the network will equal the participation ratio of athletes in the conference. That ratio now stands at 53 percent male and 47 percent female. Delany hopes to have nearly 40 percent of the broadcasts on the network be female athletic events during the first year.

But the burning issue still remains - only one of the 13 largest cable providers in the Midwest is signed on with the Big Ten Network. While the Big Ten Network has made concessions to allow cable systems outside of the Big Ten region to put the channel on a premium tier, they're also only asking 10 cents per subscriber from those providers hoping they'll put it on their basic tier.

But this is what gets me. The Big Ten uses funky math in trying to get the public to see that it may not cost them any higher fees, especially in regard to Comcast customers. They figure the total cost to Comcast will only be about 31 cents per subscriber if the cable provider picks up the network nationwide.

Delany figures that Comcast has 20 million subscribers across the nation. Approximately 14.4 million (give or take a couple hundred thousand) of those subscribers are outside of the Big Ten region. So if 5.6 million subscribers are paying $1.10 for the network, about 14.4 million subscribers are only going to pay 10 cents for the network. Delany said that Comcast's overall cost will be 31 cents per subscriber, not enough to warrant a rate increase.

(Actually, I came up with 38 cents per subscriber, but I'll give Delany the benefit of the doubt. He probably has the exact subscriber figures from Comcast.)

My question to Delany - what about Mediacom? Mediacom is located primarily in the Midwest, and primarily in Iowa. There's no way that he can use that sort of math logic to pacify Iowa Hawkeye fans across the state. Either way you look at it, Mediacom is going to get socked for $1.10 per subscriber and won't be able to spread lower costs over an area outside of the Big Ten region to make it easier for the cable provider to absorb the blow of higher rate fees.

While the Big Ten is urging fans to call their local cable operators and demand the network, don't look for cable companies to buckle under right away. Comcast, Time Warner, Mediacom and other cable companies are talking to the Big Ten about showing the network, but they're all maintaining the per subscriber fee is too high to pass along to their customers to include it in a basic tier package.

While the Big Ten Conference is looking to extend the league's brand name and image far beyond the eight states, cable operators are not looking to foot the bill which could be as high as $237 million annually going into the Big Ten Network's coffers. While cable providers call the $1.10 per subscriber fee a "Big Ten tax", the Big Ten views putting their programming on a premium or sports tier in the Midwest as blackmailing the public into paying more for cable services.

Either way, at $1.10 per subscriber the general public is going to pay. I'm usually against the cable companies, but on this one I like how they're looking out for the interests of people who may not want to pay higher fees for basic cable service. I'd gladly pay to have the Big Ten Network on a premium tier. But I can tell you the majority of my neighbors won't and shouldn't pay higher fees for basic cable if the Big Ten Network goes on the basic tier.

I'm starting to get the idea from his recent strange comments and quirky actions that Jim Delany has suddenly realized the Big Ten is quickly running out of time - and out of ammunition - in getting the major cable providers in the Midwest to sign up for the Big Ten Network. There seems to be a lot more "defending" of their position these days.

If the Big Ten wouldn't be so arrogant about their situation I think deals with cable providers would have been completed months ago. But the arrogance has now forged a major wedge between the conference and cable companies to the extent the biggest losers will be the fans of Big Ten teams who won't be able to watch their favorite teams play on TV this fall.